On 10 July 1975, the captain of the Finback permitted a topless farewell dance to be performed on the diving plane of the sail by a local go-go dancer known as Cat Futch (Cathy Susan Futch[1]) as the vessel departed Port Canaveral, Florida. On 1 August 1975, when the Navy brass learned of the incident, the submarine was ordered back to port and the captain was relieved of his command,[2] "pending the investigation of an incident of a non-operational nature."[3] The captain, Cdr. Connelly D. Stevenson, 41, gave permission for the act as a reward for performance by his crew during a major overhaul at the Naval shipyard in Portsmouth, Virginia, the preceding year which cut two months off of a scheduled 12-month overhaul at considerable savings to the government. Stevenson was seeking to be reinstated in his command and said that he did not know how the incident had leaked to the media. "I'm in the middle of Navy proceedings in my behalf and I'm already concerned that the press just has not done my cause any good and it's certainly my intention not to continue the press activity," he stated in a 9 September 1975 Washington Post report that publicly broke the incident.[4]

Ultimately, Admiral James L. Holloway III, Chief of Naval Operations, on 2 October 1975, found the former commander of Finback "guilty of permitting an action, which could have distracted the attention of those responsible for the safe navigation of the nuclear-powered submarine maneuvering in restricted waters." Holloway agreed with subordinates that Stevenson had failed to exercise good judgement and did not follow regulations governing civilian visitors to naval vessels. Stevenson's next assignment was to the Naval Research Laboratory in London, and although technically still eligible for the promotion list such consideration was unlikely under the circumstances and he subsequently left active duty.[5]

An article in the February 2010 issue of Naval History, published by the United States Naval Institute, Annapolis, Maryland, categorizes this episode as "one of the most notorious incidents in the history of the Navy's nuclear-powered submarine force."